These programs provide cash-strapped homebuyers with funds to cover down payment and closing costs that may allow them to qualify for a home purchase. The assistance typically is offered as a forgivable second lien that requires no monthly payments. If the homebuyer lives in the home for a specified length of time, the homebuyer does not have to repay the second lien.

These programs are available only for the purchase of a primary residence and typically only to first time homebuyers (not owned a home in the last 3 years). They target low to moderate income homebuyers, so income limits apply.

These programs reduce your federal income tax obligation by providing a tax credit for the interest you pay on your mortgage. Unlike a tax deduction, a tax credit is a dollar-for-dollar reduction against your income tax liability. The tax credit is a percentage of the annual interest paid on your mortgage.

These programs are available only for the purchase of a primary residence, and in some cases you must be a first time homebuyer (not owned a home in the last 3 years) to qualify. The programs typically have income and purchase price limits.

All mortgage types are eligible, but be aware that not all lenders participate in these programs. Eligible properties include single family homes, townhomes, condominiums, and, in some cases, manufactured homes.

You must continuously live in your home for a specified length of time (typically 10 years) to receive the full benefit of the credit. If you sell the home before that time, you may be required to pay back a portion of the credit.

HUD homes are properties owned by HUD as a result of foreclosure of FHA-insured mortgages. For a limited time, HUD is allowing qualified buyers to purchase a HUD home with only a $100 down payment when they use FHA financing.

You must purchase the home as your primary residence. The program is not available for investment properties.

The number of properties available is limited and the list of available properties changes weekly. (Click here for to search for HUD homes.) The properties are offered "as is." Some may require rehabilitation, and you may be able to include the rehabilitation costs in the loan.

To qualify for the $100 down program, you must offer HUD's list price for the property. HUD will still pay up to 3% of the list price for closing costs and up to 5% for the selling agent commission, if these items are included in the purchase contract.

The Good Neighbor Next Door program encourages law enforcement officers, teachers (pre-kinder through 12th grade), firefighters, and emergency medical technicians to become homeowners by providing a 50% discount off the list price of a home. In return you must commit to live in the property for 36 months as your sole residence.

The program is available on certain single-family properties owned by HUD as a result of foreclosure of FHA-insured mortgages. Eligible properties are located in HUD-designated Revitalization Areas. The number of properties available is limited and the list of available properties changes weekly. (Click here for to search for HUD homes.)

The program has no income limits. If FHA financing is used for the purchase, your minimum down payment is $100, and you may finance the closing costs (including discount points).

Neither you nor your spouse, if married, may have owned any residential real property during the year prior to the date of submitting a bid on a home being acquired through the program, and you must never have purchased another home through the program.

HUD requires that you sign a second mortgage and note for the amount it discounts the home. You pay no interest or payments on this "silent second" provided that you fulfill the three-year occupancy requirement. If you stop living in the home before three years elapses, you must pay the second mortgage, prorated for the time remaining in the owner-occupancy term.